“It is, in the long run, healthier for the U.S. economy to face regulations by the federal government.”
People who regularly interact with toddlers know that everyone is born selfish. It is human nature to gain as much for yourself as possible, and that often includes causing harm to those around you by taking something that they want or have.
This central selfishness is the root of government, particularly those of democratic/republic style. As a group, the people who found the government choose to give enforcement power to a law-making entity. They essentially say, “I give up my right to do whatever I want to those around me in order to protect myself from other people who might want to do those horrible things to me instead.” It is from this collective relinquishment of personal freedom that the government derives its authority. Therefore, the purpose of a government is to protect its people. (
http://lawreview.richmond.edu/econom...nal-framework/)
The United States (a democratic republic) was founded with the principle of laissez-faire in mind – that of letting the market supply and demand find equilibrium without interference from external forces like government. In essence, a free market.
However, in many industries, the market does not meet the conditions necessary to find that equilibrium and truly be a competitive, healthy system. These conditions include free entry and exit from the market; no externalities, public goods, false market signals, moral hazard, nor principle agent problems; accurate exchange of information between the producer and consumer; and well-defined property rights. (
http://economistsview.typepad.com/ec...s_are_not.html) If any of the necessary conditions are not met, markets’ results can vary widely, and they are frequently unsuccessful in creating balanced, competitive environments of economic exchange.
Therefore, regulation of some variety is necessary for adequate functioning of the economy of the United States in order to control human behavior in such a way as to more closely approach the ideal conditions of a truly balanced free market. (
http://www.creators.com/opinion/paul...regulated.html)